Modern automotive vehicles employing all-wheel drive or four-wheel drive drivelines frequently employ a disconnecting axle to restrict operation of the driveline so that only a single set of vehicle wheels are driven. Configuration in this manner provides the driveline with increased traction capabilities (i.e., when actively driving all four of the vehicle wheels) as well as fuel economy that approaches a conventional two-wheel drive driveline (i.e., when only two of the vehicle wheels are actively driven). Examples of disconnecting axles are found in U.S. Pat. Nos. 9,199,535 and 9,074,672. While such disconnecting drivelines are well suited for their intended purpose, there remains a need for an axle assembly with a compact, robust and relatively inexpensive disconnect mechanism.